The Wooden Warriors Blog has tutorials on making soldiers from bits of craft woods.
Modeling
Making A Cave Tomb
Terragenesis has a photo tutorial on making a cave system. It’d be good for a cave, a mine, a tomb or a hobbit hole.
Kiev’s Museum of Micro Miniatures
Within the walls of the Kyiv Pechersk Lavra, the Kiev Monastary of the Caves is the Museum of Microminiatures, a collection of models that are so small and so detailed that they defy belief. For example, there is the rose inside a hair, shown above:
“The hair is drilled lengthwise and polished outside and inside until being transparent. An artificial rose twig is inserted into the bore. The flower diameter is 0.05 millimeters, the stem is 0.005 millimeters thick.”
Using Children’s Board Books For Bases
Here’s an interesting idea about using an old children’s board book as a base for making terrain. I think there’s lots of other uses for this readily available source of thick cardboard.